In the latest trading session, Shell (SHEL) closed at $69.53, marking a +0.55% move from the previous day. This change outpaced the S&P 500’s 0.25% gain on the day. On the other hand, the Dow registered a gain of 0.15%, and the technology-centric Nasdaq increased by 0.03%.
Heading into today, shares of the oil and gas company had lost 3.41% over the past month, outpacing the Oils-Energy sector’s loss of 5.99% and lagging the S&P 500’s gain of 3.34% in that time.
Market participants will be closely following the financial results of Shell in its upcoming release. The company’s earnings per share (EPS) are projected to be $1.85, reflecting a 23.33% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $88.71 billion, reflecting a 16.69% rise from the equivalent quarter last year.
SHEL’s full-year Zacks Consensus Estimates are calling for earnings of $8.37 per share and revenue of $351.7 billion. These results would represent year-over-year changes of -0.36% and +8.82%, respectively.
It is also important to note the recent changes to analyst estimates for Shell. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Shell boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Shell currently has a Forward P/E ratio of 8.26. This indicates a premium in contrast to its industry’s Forward P/E of 6.92.
Meanwhile, SHEL’s PEG ratio is currently 1.78. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The average PEG ratio for the Oil and Gas – Integrated – International industry stood at 1.78 at the close of the market yesterday.
The Oil and Gas – Integrated – International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 33% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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